ICAO’s CORSIA and EU ETS – May 2017 Newsletter
European Commission Proposed Continuation of “Stope-the-clock”
On the 3rd of February 2017, the long-awaited proposal from European Commission following the official end of “stop-the clock” was published.
Pending agreement in ICAO, and to promote the development of a global measure to regulate international aviation emissions in ICAO, the EU temporarily reduced the scope of the EU ETS to intra-EEA flights until 2016, waiting for the outcome of ICAO to review its scope in relation to extra-EEA flights. In the absence of any amendments to the EU EST Directive, the EU ETS would had automatically reverted back to its full-scope application from 2017.
The ICAO Member States agreed in October 2016 to implement a Global Market-Based Measure (GMBM) to compensate post-2020 emissions growth from international aviation. The Plenary session of the UN aviation’s 39th assembly recommended adoption of a final resolution introducing the Carbon Offset and Reduction Scheme for International Aviation (CORSIA) from 2021. During the CORSIA’s pilot and first phase (2021-2026), participation is explicitly voluntary. All major aviation countries should apply the GMGM from the start of its second phase in 2027.
The existing legislation required the Commission to assess the outcome of the 39th ICAO Assembly and, in that light, to review the scope of the EU ETS for flights to and from the EEA. In view of agreement on the GMBM at ICAO, the EU supports its completion and timely operationalization, and the EU’s intend implementation of the GMBM from 2021 onwards, it was deemed necessary to review the EU ETS legislation.
To provide further momentum to international discussions on the remaining rules and governance necessary for the implementation of the GMBM the European Commission has proposed to continue the reduced scope application of the EU ETS (i.e. to flights between aerodromes located within the EEA, as set out in Regulation No 421/2014) beyond 2016. Once there is more clarity about the nature and content of the legal instruments adopted by ICAO for the implementation of the GMBM as well as about the intentions of our international partners regarding the implementation of the GMBM, a further assessment and review the EU ETS for the post-2020 period will be carried out.
A proposed new article to the EU ETS Directive would require the EC to report to the European Parliament and the Council on international developments of relevance for the implementation of the GMBM, as well as on the actions taken by third countries to implement the GMBM. Thereby, the Commission is to consider ways to implement the relevant ICAO instruments in Union law through a revision of the EU ETS Directive. Also, to prepare for the implementation of the GMBM the Commission is empowered to adopt delegated acts to provide for the appropriate monitoring, reporting and verification of emissions applicable to aircraft operators for the purpose of implementing the CORSIA.
To provide legal certainty for compliance with the EU ETS in 2017, it is important that this proposal is agreed between the European Parliament and Council swiftly and ideally by the end of 2017.
> Read more on GreenAir Online
> Press release of European Commission on the new proposal
EU ETS Phase 4 Reforms Aviation Cap
The European Parliament agreed on reforms of the EU ETS that will regulate international ship CO2 emissions as well as significantly tighten the cap on aviation emissions.
The European Parliament has voted to increase the ambition of the EU Emissions Trading System (EU ETS) for the next phase of the scheme starting in 2021, which includes tightening the emissions cap of the aviation sector. The sector should expect to receive 10% fewer allowances than its 2014-2016 average, say MEPs. Trilogue negotiations on the overall EU ETS reform package will now take place with the EU Council, which represents Member States, and the European Commission before a final decision is taken.
Under the Parliament’s proposals, the total quantity of allocated allowances in 2021 would be 10% lower than the average allocation for the period from 1 January 2014 to 31 December 2016, and then decrease annually at the same rate of 2.2% – the so-called linear reduction factor – as that of the total cap for the EU ETS so as to bring the cap for the aviation sector more in line with the other sectors by 2030. Since its inclusion in 2012, no such annual reduction factor has been applied to aviation.
For aviation activities to and from aerodromes located in countries outside the EEA, the quantity of allowances to be allocated from 2021 onwards may be adjusted taking into account the future of the global market-based mechanism agreed by ICAO at its 39th Assembly. By 2019, the European Commission shall present a legislative proposal to the European Parliament and the Council following the 40th Assembly of ICAO.
Under current rules, 15% of allowances are auctioned but MEPs have agreed that the level should be raised to 50% from 1 January 2021.
> Read more on GreenAir Online
> Briefing Statement from European Parliament
> Read more from Transport & Environment
CORSIA News and ICAO CORSIA International Seminar
On the 21st of April Saudi Arabia communicated to ICAO its intention to voluntarily participate in the global MBM scheme from its outset raising number of voluntary participants to 67.
CORSIA’s cornerstones to be agreed and published by ICAO are the MRV (methodology for monitoring, reporting and verification of individual operators’ emissions), EUC (Emissions Unit Criteria) and the registries. ICAO has already stipulated in its Resolution that it will provide assistance to all states to put in place the necessary infrastructure and priority will be given to the states who volunteer.
The Council is requested to develop the SARPs (Standards and Recommended Practices) and related guidance material for the implementation of the MRV system under the CORSIA, including simplified MRV (Monitoring, reporting and verification) procedures, for adoption by the Council by 2018. The MRV system should be implemented by States from 1st January 2019.
ICAO held several Regional Seminars on States’ Action Plans and CORISA with the following objectives:
- To provide national action plan focal points and aviation industry stakeholders with practical input on the calculation of the CO2 emissions baseline and other quantification aspects.
- To share information on CORSIA's design elements and implementation aspects, including the work being undertaken on the development of Standards and Recommended Practices (SARPs) and guidance material for CORSIA implementation.
- To provide an opportunity for States to share their existing readiness to implement CORSIA and conduct an assessment of assistance needs.
Verifavia will be present at the Seminar and encourages all of its clients and aviation community to contact us with questions related to CORSIA and its MRV. Verifavia can thereafter update and issue more information and FAQs on CORSIA for your reference.
The Emissions Unit Criteria and quality of offset mechanisms to be used under CORSIA also remains unclear. Cases for some forestry offsets and against offset credits under the UN CDM were made public recently.
> Read more about ICAO’s CORSIA
> ICAO’s CORSIA FAQs
> Download Presentations from ICAO Regional Seminars
> CORSIA International Seminar in Montreal
> Contact Verifavia
Save the Date for Aviation Carbon Event 2017
Following the tremendous success of Aviation Carbon 2012 and 2013 each of which attracted approximately 300 delegates from more than 100 airlines and business jet operators, representing 60 countries around the world, we are pleased to announce that our third strategic conference Aviation Carbon 2017 will take place on Monday 4th and Tuesday 5th December 2017 at London Heathrow Airport!
Aviation Carbon 2017 will allow airlines, other aircraft operators and stakeholders to get fully up to speed on the status and impacts of the ICAO CORSIA global emissions scheme, and EU ETS revisions, from leading experts including Competent Authorities. Both CORSIA and the EU’s response to it will have major implications for airlines and business jet operators worldwide, as well as for the carbon markets, investors and producers of alternative fuels, other sectors and companies involved in aviation.
Aviation Carbon 2017 will provide valuable insights into carbon offsets, carbon markets and sustainable biofuels. It will allow airlines and aircraft operators to be better prepared for submitting CORSIA Monitoring Plans by the summer of 2018, monitoring of all international flights by all operators from January 2019, and developing efficient carbon management and purchasing strategies.
> Visit the event's website
The VERIFAVIA team is available for any questions you may have about this newsletter or other ETS and CORSIA related issues.
> Contact us
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